Financial Life Cycle

Question 1

What is the difference between needs and wants?

Answer 1

Needs are items you need to survive and Wants are items we want but could do without.

Question 2

Give 3 examples of needs and wants?

Answer 2

Needs:
Water, food, shelter.
Wants:
PS4, Car, Jewellery

Question 3

Give the Goal, Income and expenditure of childhood?

Answer 3

Goal: Understanding Money
Income: Pocket Money
Expenditure: Minimal Toys and snacks

Question 4

Give the Goal, Income and expenditure of Teens?

Answer 4

Goal: Start savings plan
Income: part-time job
Expenditure: clothing, socializing

Question 5

Give the Goal, Income and expenditure of 20 to 30 year olds?

Answer 5

Goal: Save for big purchase (Car/holiday)
Income: Wages
Expenditure: Rent

Question 6

Give the Goal, Income and expenditure of 25 to 35 year olds?

Answer 6

Goal: Purchase a home
Income: Overtime
Expenditure: Utility Bills

Question 7

Give the Goal, Income and expenditure of 35 to 65 year olds?

Answer 7

Goal: Grow your Pension
Income: Child Benefit
Expenditure: Children Education

Question 8

Give the Goal, Income and expenditure of people who are retired?

Answer 8

Goal: Make A Will
Income: Pension
Expenditure: Travel

Question 9

At what age do people usually retire?

Answer 9

60-70

Question 10

What is the definition of the financial life cycle?

Answer 10

A series of stages people go through in their lives each stage has different financial goals, income and spending.